Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Elevance Health Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Elevance Health Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Elevance Health Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Elevance Health Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Elevance Health Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Elevance Health Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Elevance Health Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Elevance Health Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Elevance Health Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Elevance Health Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
Elevance Health Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Shareholders’ equity | 39,306) | 36,307) | 36,060) | 33,199) | 31,728) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.64 | 0.66 | 0.64 | 0.60 | 0.63 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.38 | 0.46 | 0.50 | 0.57 | 0.58 | |
| Cigna Group | 0.67 | 0.69 | 0.71 | 0.65 | 0.83 | |
| CVS Health Corp. | 0.81 | 0.74 | 0.75 | 0.93 | 1.07 | |
| Humana Inc. | 0.74 | 0.75 | 0.80 | 0.51 | 0.49 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.47 | 0.46 | 0.51 | 0.49 | 0.51 | |
| UnitedHealth Group Inc. | 0.70 | 0.74 | 0.64 | 0.66 | 0.71 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.62 | 0.63 | 0.63 | 0.65 | 0.72 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.81 | 0.72 | 0.78 | 0.90 | 0.91 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 25,120 ÷ 39,306 = 0.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Elevance Health Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Equity (including Operating Lease Liability)
Elevance Health Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Operating leases, lease liabilities, current (located in Other current liabilities) | 164) | 181) | 133) | 110) | 158) | |
| Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities) | 685) | 751) | 864) | 847) | 482) | |
| Total debt (including operating lease liability) | 25,969) | 25,046) | 24,028) | 20,992) | 20,725) | |
| Shareholders’ equity | 39,306) | 36,307) | 36,060) | 33,199) | 31,728) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.66 | 0.69 | 0.67 | 0.63 | 0.65 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.41 | 0.49 | 0.54 | 0.61 | 0.61 | |
| Cigna Group | 0.68 | 0.70 | 0.73 | 0.67 | 0.84 | |
| CVS Health Corp. | 1.04 | 1.00 | 1.01 | 1.23 | 1.39 | |
| Humana Inc. | 0.77 | 0.79 | 0.84 | 0.54 | 0.53 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.49 | 0.48 | 0.53 | 0.51 | 0.51 | |
| UnitedHealth Group Inc. | 0.76 | 0.80 | 0.70 | 0.73 | 0.77 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.70 | 0.71 | 0.71 | 0.74 | 0.81 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.86 | 0.77 | 0.84 | 0.96 | 0.97 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 25,969 ÷ 39,306 = 0.66
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Elevance Health Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital
Elevance Health Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Shareholders’ equity | 39,306) | 36,307) | 36,060) | 33,199) | 31,728) | |
| Total capital | 64,426) | 60,421) | 59,091) | 53,234) | 51,813) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.39 | 0.40 | 0.39 | 0.38 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.28 | 0.31 | 0.34 | 0.36 | 0.37 | |
| Cigna Group | 0.40 | 0.41 | 0.42 | 0.40 | 0.45 | |
| CVS Health Corp. | 0.45 | 0.42 | 0.43 | 0.48 | 0.52 | |
| Humana Inc. | 0.42 | 0.43 | 0.44 | 0.34 | 0.33 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.32 | 0.31 | 0.34 | 0.33 | 0.34 | |
| UnitedHealth Group Inc. | 0.41 | 0.43 | 0.39 | 0.40 | 0.41 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.39 | 0.39 | 0.39 | 0.42 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.45 | 0.42 | 0.44 | 0.47 | 0.48 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 25,120 ÷ 64,426 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Elevance Health Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Capital (including Operating Lease Liability)
Elevance Health Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Operating leases, lease liabilities, current (located in Other current liabilities) | 164) | 181) | 133) | 110) | 158) | |
| Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities) | 685) | 751) | 864) | 847) | 482) | |
| Total debt (including operating lease liability) | 25,969) | 25,046) | 24,028) | 20,992) | 20,725) | |
| Shareholders’ equity | 39,306) | 36,307) | 36,060) | 33,199) | 31,728) | |
| Total capital (including operating lease liability) | 65,275) | 61,353) | 60,088) | 54,191) | 52,453) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.40 | 0.41 | 0.40 | 0.39 | 0.40 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.29 | 0.33 | 0.35 | 0.38 | 0.38 | |
| Cigna Group | 0.40 | 0.41 | 0.42 | 0.40 | 0.46 | |
| CVS Health Corp. | 0.51 | 0.50 | 0.50 | 0.55 | 0.58 | |
| Humana Inc. | 0.44 | 0.44 | 0.46 | 0.35 | 0.34 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.33 | 0.32 | 0.35 | 0.34 | 0.34 | |
| UnitedHealth Group Inc. | 0.43 | 0.45 | 0.41 | 0.42 | 0.44 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.41 | 0.41 | 0.41 | 0.43 | 0.45 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.44 | 0.46 | 0.49 | 0.49 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 25,969 ÷ 65,275 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Elevance Health Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets
Elevance Health Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Total assets | 108,928) | 102,772) | 97,460) | 86,615) | 77,453) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.23 | 0.23 | 0.24 | 0.23 | 0.26 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.20 | 0.23 | 0.24 | 0.26 | 0.27 | |
| Cigna Group | 0.20 | 0.22 | 0.22 | 0.21 | 0.24 | |
| CVS Health Corp. | 0.25 | 0.23 | 0.24 | 0.28 | 0.31 | |
| Humana Inc. | 0.26 | 0.27 | 0.29 | 0.20 | 0.20 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.27 | 0.27 | 0.28 | 0.27 | 0.28 | |
| UnitedHealth Group Inc. | 0.23 | 0.23 | 0.22 | 0.22 | 0.23 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.23 | 0.23 | 0.23 | 0.24 | 0.26 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.27 | 0.28 | 0.30 | 0.31 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 25,120 ÷ 108,928 = 0.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Elevance Health Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Elevance Health Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 225) | 265) | 275) | —) | 700) | |
| Current portion of long-term debt | 1,649) | 1,500) | 1,599) | 700) | 1,598) | |
| Long-term debt, less current portion | 23,246) | 22,349) | 21,157) | 19,335) | 17,787) | |
| Total debt | 25,120) | 24,114) | 23,031) | 20,035) | 20,085) | |
| Operating leases, lease liabilities, current (located in Other current liabilities) | 164) | 181) | 133) | 110) | 158) | |
| Operating leases, lease liabilities, noncurrent (located in Other noncurrent liabilities) | 685) | 751) | 864) | 847) | 482) | |
| Total debt (including operating lease liability) | 25,969) | 25,046) | 24,028) | 20,992) | 20,725) | |
| Total assets | 108,928) | 102,772) | 97,460) | 86,615) | 77,453) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.24 | 0.25 | 0.24 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.22 | 0.24 | 0.26 | 0.27 | 0.28 | |
| Cigna Group | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | |
| CVS Health Corp. | 0.32 | 0.31 | 0.33 | 0.37 | 0.40 | |
| Humana Inc. | 0.27 | 0.28 | 0.31 | 0.21 | 0.22 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.28 | 0.27 | 0.29 | 0.28 | 0.28 | |
| UnitedHealth Group Inc. | 0.25 | 0.25 | 0.24 | 0.24 | 0.26 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.26 | 0.26 | 0.27 | 0.27 | 0.29 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.29 | 0.30 | 0.32 | 0.33 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 25,969 ÷ 108,928 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Elevance Health Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Elevance Health Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 108,928) | 102,772) | 97,460) | 86,615) | 77,453) | |
| Shareholders’ equity | 39,306) | 36,307) | 36,060) | 33,199) | 31,728) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.77 | 2.83 | 2.70 | 2.61 | 2.44 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 1.90 | 2.03 | 2.10 | 2.21 | 2.18 | |
| Cigna Group | 3.30 | 3.21 | 3.29 | 3.09 | 3.44 | |
| CVS Health Corp. | 3.27 | 3.21 | 3.10 | 3.32 | 3.48 | |
| Humana Inc. | 2.89 | 2.81 | 2.76 | 2.55 | 2.42 | |
| Intuitive Surgical Inc. | 1.16 | 1.17 | 1.14 | 1.15 | 1.18 | |
| Medtronic PLC | 1.77 | 1.73 | 1.81 | 1.79 | 1.79 | |
| UnitedHealth Group Inc. | 3.08 | 3.16 | 2.96 | 3.01 | 3.02 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.73 | 2.73 | 2.68 | 2.70 | 2.75 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.80 | 2.66 | 2.77 | 2.95 | 2.93 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 108,928 ÷ 39,306 = 2.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Elevance Health Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Interest Coverage
Elevance Health Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Shareholders’ net income | 5,987) | 6,025) | 6,104) | 4,572) | 4,807) | |
| Add: Net income attributable to noncontrolling interest | 4) | (6) | (9) | —) | —) | |
| Add: Income tax expense | 1,724) | 1,750) | 1,830) | 1,666) | 1,178) | |
| Add: Interest expenses | 1,030) | 851) | 798) | 784) | 746) | |
| Earnings before interest and tax (EBIT) | 8,745) | 8,620) | 8,723) | 7,022) | 6,731) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8.49 | 10.13 | 10.93 | 8.96 | 9.02 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 11.46 | 15.89 | 16.41 | 10.10 | 7.09 | |
| Cigna Group | 4.94 | 7.43 | 6.22 | 8.76 | 5.11 | |
| CVS Health Corp. | 5.20 | 3.46 | 5.16 | 4.36 | 3.96 | |
| Humana Inc. | 7.73 | 9.89 | 11.49 | 17.52 | 15.34 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 9.43 | 10.98 | 5.21 | 4.71 | 4.60 | |
| UnitedHealth Group Inc. | 9.97 | 13.59 | 14.44 | 13.47 | 11.55 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 8.01 | 9.34 | 9.06 | 8.21 | 6.70 | |
| Interest Coverage, Industry | ||||||
| Health Care | 6.75 | 12.97 | 12.85 | 7.67 | 8.84 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 8,745 ÷ 1,030 = 8.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Elevance Health Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Elevance Health Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Shareholders’ net income | 5,987) | 6,025) | 6,104) | 4,572) | 4,807) | |
| Add: Net income attributable to noncontrolling interest | 4) | (6) | (9) | —) | —) | |
| Add: Income tax expense | 1,724) | 1,750) | 1,830) | 1,666) | 1,178) | |
| Add: Interest expenses | 1,030) | 851) | 798) | 784) | 746) | |
| Earnings before interest and tax (EBIT) | 8,745) | 8,620) | 8,723) | 7,022) | 6,731) | |
| Add: Operating lease expense | 155) | 143) | 261) | 438) | 198) | |
| Earnings before fixed charges and tax | 8,900) | 8,763) | 8,984) | 7,460) | 6,929) | |
| Interest expenses | 1,030) | 851) | 798) | 784) | 746) | |
| Operating lease expense | 155) | 143) | 261) | 438) | 198) | |
| Fixed charges | 1,185) | 994) | 1,059) | 1,222) | 944) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 7.51 | 8.82 | 8.48 | 6.10 | 7.34 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 7.71 | 10.10 | 10.21 | 6.68 | 5.14 | |
| Cigna Group | 4.64 | 6.87 | 5.61 | 7.84 | 4.67 | |
| CVS Health Corp. | 3.15 | 2.16 | 3.03 | 2.75 | 2.56 | |
| Humana Inc. | 6.20 | 7.10 | 8.05 | 12.02 | 9.76 | |
| Intuitive Surgical Inc. | 74.09 | 63.52 | 93.66 | 58.48 | 79.65 | |
| Medtronic PLC | 6.90 | 7.79 | 4.31 | 3.98 | 3.97 | |
| UnitedHealth Group Inc. | 7.27 | 8.77 | 8.80 | 8.51 | 7.65 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.69 | 6.16 | 5.95 | 5.52 | 4.75 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 5.27 | 9.19 | 9.09 | 5.67 | 6.58 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,900 ÷ 1,185 = 7.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Elevance Health Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |